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Bharat Road Network completes stake sale of 67-kilometre road project in Odisha to CDPQ

01 Jul 2022 Evaluate

Bharat Road Network (BRNL) has completed sale of its entire stake in Shree Jagannath Expressways (SJEPL) to India Highway Concession Trust, an infrastructure investment trust set up by Caisse de depot et placement du Quebec (CDPQ), a global institutional investor. SJEPL operates 67 km toll road from Bhubaneshwar to Chandikhole in Odisha. BRNL received the consideration, which have been used towards respective debt repayments and is entitled to receive its proportionate share out of Rs 700 crore of claims currently under conciliation with NHAI.

This divestment follows a SPA agreement signed between BRNL and its partners with IHCT in January last year for complete transfer of ownership of SJEPL, the special purpose vehicle (SPV) engaged in the development, operation and maintenance of a 67-kilometre toll road project from Bhubaneswar to Chandikhole, in Odisha. BRNL is currently the largest shareholder with 40 per cent stake in the project. This is the second stake sale by BRNL wherein it has entirely exited the road project with the view to create value through portfolio realignment, deleverage balance sheet and strengthen the company financials, and resolving any outstanding debt. BRNL had recently divested its entire 39 per cent stake in 126 km toll project from Ghaziabad to Aligarh to Cube Highways, a portfolio company of I Squared Capital at an enterprise valuation of Rs 1450 crore.

Bharat Road Network (BRNL) is a road BOT company in India, focused on development, implementation, operation and maintenance of roads and highways projects.

Bharat Road Network Share Price

21.61 -0.01 (-0.05%)
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